🎉 CoinGecko Turns 10! Celebrate with us
Coins: 13,908
Exchanges: 1,057
Market Cap: $2.399T 3.1%
24h Vol: $132.877B
Gas: 10 GWEI
Go Ad-free
Tutorials
TABLE OF CONTENTS

How To Stake Cardano (ADA) Through Yoroi?

4.2 | by Regiena Regunathan

Proof-of-Work (PoW), also known as mining, requires miners to solve complex mathematical problems as a means to validate the authenticity of transactions on the blockchain. Miners compete and try to be the first ones to solve the mathematical problem and produce the next block.

As a reward for verifying transactions, miners are paid in cryptocurrencies. The complexity of these mathematical problems rises in direct proportion to the network's computer capability.

When it comes to Proof-of-Stake (PoS), it serves the same purpose as Proof-of-Work but is done in a sustainable manner. 

A PoS consensus method is made up of a set of validators that regulates transactions and generates new blocks on a blockchain network in order to achieve network consensus. To attest to the authenticity of a block on the blockchain, the validators stake their cryptocurrency, and they are then rewarded with a specific amount of cryptocurrency through this staking method.

Users who possess ADA tokens on the Cardano network have a stake directly proportional to the number of tokens held. 

There are two ways to earn rewards with staking Cardano:

  • Operate or run a stake pool

  • Join a stake pool

Users can stake their ADA tokens by operating a stake pool or by joining a stake pool, taking part in the administration and surveillance of the proof-of-stake network, and verifying new blocks and transactions. They are then rewarded for their work in new ADA tokens. 

Advanced users usually run their own pool, which requires technical skills and experience in development and operations. If Amanda is operating a stake pool, she will then be rewarded for maintaining the network. 

However, if Amanda cannot be online 24/7, she should “delegate” her holdings and join a stake pool. It is basically when a user “elects” someone to maintain their network for a small fee. Being online constantly will allow the user to mine the next block. 

In return, the user will be rewarded and will always have access to the pool even after delegating them. 

8 Steps to Stake Cardano (ADA)

The primary way to stake Cardano is staking via an exchange or wallet. 

Staking Cardano using a cryptocurrency wallet is the most straightforward approach for beginners. To begin staking ADA tokens, you must first have ADA tokens in a cryptocurrency wallet.

In terms of wallet choices, Cardano can be staked through Daedalus and Yoroi. 

Cardano WalletsPicture credit: cardano.org

Daedalus was created by IOHK, a dedicated company pursuing the growth of Cardano. It is a software wallet that is compatible with macOS, Windows, and Linux. Yoroi is a beginner-friendly staking wallet suitable for anyone who wants to stake ADA tokens as a delegator.

It is a browser extension that is compatible with Google Chrome, Firefox, and Microsoft Edge. You may download the mobile application for the Yoroi wallet on both the Playstore and Appstore

In this article, the process of staking Cardano through Yoroi will be broken down into simple steps. 

Step 1: Download Yoroi extension

Head on over to Yoroi and download the extension that is suitable for you. For this article, we will be using the Chrome extension wallet.

Download Yoroi

Step 2: Create a new wallet

There is an option to restore an existing wallet, use a hardware wallet, or create a wallet. For this article, we will create a new wallet. 

Create new Yoroi Wallet

Step 3: Create username and password

Next, simply name your wallet and the password you will use to access this wallet. Once that is sorted, you will be prompted with a custom recovery phrase.

Create Username and Password Yoroi

Step 4: Save the recovery phase

Keep the custom recovery phrase somewhere safe and guarded where it won’t be lost. The recovery phrase is needed to restore your wallet to a different computer should you choose to. 

If you lose the recovery phrase, you will lose access to the wallet, and the funds contained in it cannot be recovered. Also, note that if the recovery phrase falls into the wrong hands, the other party will have access to all the funds contained in the wallet. 

Save recovery phrase Yoroi

Step 5: Deposit ADA tokens

Now, some ADA tokens will need to be deposited in the newly created wallet. Click on the ‘Receive’ option and you will be prompted to the next page. 

Deposit ADA with Yoroi

For this article, the tokens will be withdrawn from Kraken

Step 6: Withdraw ADA tokens from the exchange

You will need to copy the address from your Yoroi wallet and input the address in the withdrawal address on your exchange. 

Withdraw ADA from Exchanges into YoroiKraken withdrawal screen

Complete withdrawal Yoroi

Once your withdrawal is completed, your Yoroi dashboard should look like this. 

Yoroi Dashboard complete

Step 7: Start delegating the tokens

Click on the ‘Delegation List’ column at the top right to choose a stake pool. It should look something like this.

Delegating Tokens Yoroi

If you know the name of the stake pool, then you can simply input the name into the search bar and delegate your tokens. However, if you are unsure where you should stake your Cardano, head on over to these two sites to analyze your stake pool of choice:

Confirm transaction stake pool

Step 8: Select your stake pool

Select your stake pool, then key in your password, and you are good to go! You have just staked your ADA tokens and can now start collecting staking rewards. 

The operation fee varies with different stake pools, and a waiting period of 20 days is needed for approval when you first start delegating. Once the approval is completed, ADA rewards are given at every epoch (five days). 

How Much Can I Earn With Cardano Staking?

You will get a return on your investment if you opt to stake your Cardano (ADA) tokens for a period of time. 

According to the Cardano website, you can expect to earn around 4.6% per annum when you stake USD1,000 worth of ADA. 

earn with Cardano Staking

Is Staking Cardano Safe?

As an investor, you should be aware that staking ADA is simply like earning interest from a checking account. The ADA that is used to invest and stake does not leave the investor’s wallet. 

Investors have the freedom to stake any amount of ADA tokens they like and withdraw them at any time, a feature that serves as an advantage for Cardano stakers. 

As shown above, staking through a wallet like Yoroi is a relatively simple process. However, as an investor, you should safeguard your password and seed phrase. If the seed phrase is lost, you will not have any access to the ADA tokens in your wallet.

Wrapping It Up

Staking Cardano is a good way to earn rewards for holding this cryptocurrency but just like any other investment, should the price of ADA reduce, you may bear some losses as the returns would not be substantial. 

The journey of investing in cryptocurrency is a volatile one and the risks that come with it are among the things to be aware of. Cardano has gained its popularity over the years and having dedicated platforms to stake ADA tokens has made the process simple for potential investors.

CoinGecko's Content Editorial Guidelines
CoinGecko’s content aims to demystify the crypto industry. While certain posts you see may be sponsored, we strive to uphold the highest standards of editorial quality and integrity , and do not publish any content that has not been vetted by our editors.
Learn more
Tell us how much you like this article!
Vote count: 6
Regiena Regunathan
Regiena Regunathan

Regiena is a banker, an avid reader, and part-time freelance writer, currently exploring the realm of blockchain technologies.

Related Articles


Explore Polkadot's Ecosystem
Discover trending dApps, wallets, DeFi & more

What is Zeebu?
Learn more about the Web3 neobank


coingecko
Continue in app
Track prices in real-time
Open App
Select Currency
Suggested Currencies
USD
US Dollar
IDR
Indonesian Rupiah
TWD
New Taiwan Dollar
EUR
Euro
KRW
South Korean Won
JPY
Japanese Yen
RUB
Russian Ruble
CNY
Chinese Yuan
Fiat Currencies
AED
United Arab Emirates Dirham
ARS
Argentine Peso
AUD
Australian Dollar
BDT
Bangladeshi Taka
BHD
Bahraini Dinar
BMD
Bermudian Dollar
BRL
Brazil Real
CAD
Canadian Dollar
CHF
Swiss Franc
CLP
Chilean Peso
CZK
Czech Koruna
DKK
Danish Krone
GBP
British Pound Sterling
GEL
Georgian Lari
HKD
Hong Kong Dollar
HUF
Hungarian Forint
ILS
Israeli New Shekel
INR
Indian Rupee
KWD
Kuwaiti Dinar
LKR
Sri Lankan Rupee
MMK
Burmese Kyat
MXN
Mexican Peso
MYR
Malaysian Ringgit
NGN
Nigerian Naira
NOK
Norwegian Krone
NZD
New Zealand Dollar
PHP
Philippine Peso
PKR
Pakistani Rupee
PLN
Polish Zloty
SAR
Saudi Riyal
SEK
Swedish Krona
SGD
Singapore Dollar
THB
Thai Baht
TRY
Turkish Lira
UAH
Ukrainian hryvnia
VEF
Venezuelan bolívar fuerte
VND
Vietnamese đồng
ZAR
South African Rand
XDR
IMF Special Drawing Rights
Cryptocurrencies
BTC
Bitcoin
ETH
Ether
LTC
Litecoin
BCH
Bitcoin Cash
BNB
Binance Coin
EOS
EOS
XRP
XRP
XLM
Lumens
LINK
Chainlink
DOT
Polkadot
YFI
Yearn.finance
Bitcoin Units
BITS
Bits
SATS
Satoshi
Commodities
XAG
Silver - Troy Ounce
XAU
Gold - Troy Ounce
Select Language
Popular Languages
EN
English
RU
Русский
DE
Deutsch
PL
język polski
ES
Español
VI
Tiếng việt
FR
Français
PT
Português
All Languages
AR
العربية
BG
български
CS
čeština
DA
dansk
EL
Ελληνικά
FI
suomen kieli
HE
עִבְרִית
HI
हिंदी
HR
hrvatski
HU
Magyar nyelv
ID
Bahasa Indonesia
IT
Italiano
JA
日本語
KO
한국어
LT
lietuvių kalba
NL
Nederlands
NO
norsk
RO
Limba română
SK
slovenský jazyk
SL
slovenski jezik
SV
Svenska
TH
ภาษาไทย
TR
Türkçe
UK
украї́нська мо́ва
ZH
简体中文
ZH-TW
繁體中文
Login to track your favorite coin easily 🚀
By continuing, you agree to CoinGecko Terms of Service and acknowledge you’ve read our Privacy Policy
or
Forgot your password?
Didn't receive confirmation instructions?
Resend confirmation instructions
IT'S FREE! Track your favorite coin easily with CoinGecko 🚀
By continuing, you agree to CoinGecko Terms of Service and acknowledge you’ve read our Privacy Policy
or
Password must contain at least 8 characters including 1 uppercase letter, 1 lowercase letter, 1 number, and 1 special character
Didn't receive confirmation instructions?
Resend confirmation instructions
Forgot your password?
You will receive an email with instructions on how to reset your password in a few minutes.
Resend confirmation instructions
You will receive an email with instructions for how to confirm your email address in a few minutes.
Get the CoinGecko app.
Scan this QR code to download the app now App QR Code Or check it out in the app stores